I began writing for Forbes in 2010. It was just as the economy was starting to perk up and a fascinating time to cover the stock market, which I did for three months until I switched beats in September 2010. Now I contribute to the Leadership channel, with a focus on jobs and careers–-another hot topic in a time when people are vigorously hunting for jobs or desperately trying to hold on to the ones they have. I have a BA from the University of Arizona and a master's degree in journalism from Hofstra University. Follow me on Twitter @JacquelynVSmith, subscribe to me on Google+, or email me at jsmith [at] forbes [dot] com.

4/07/2011 @ 10:08PM3,845 views

What Employers Should Know About The Class Of 2011

In order to attract the top performers, it’s crucial that employers understand how the 75 million Millennials entering today’s workforce plan to seek employment, and what they value most in a company and a job.

The “Class of 2011” survey, conducted by I Love Rewards and Experience, Inc., asked over 8,000 students where they plan to look for jobs, how they like to be motivated and what it will take to retain them.

“Now more than ever, it is important for employers to understand what will win top talent,” says Razor Suleman, CEO and Founder of I Love Rewards, an employee rewards and recognition solutions provider. “In our knowledge and service-based economy, human capital is the competitive advantage.”

How They Plan To Search

While Millennials are very savvy social media users and communicators, it turns out only 37% of them are using those sites as a primary source for their job hunt. The majority are still exercising the old fashioned approaches.

When asked to rank six job search methods in order of importance, about 88% of respondents said they plan to go straight to the source and submit an application directly to the company. Seventy-two percent said they’re most likely to utilize a career services center on campus, and 28% will search for jobs in the newspaper – down 6% from 2010.

That doesn’t mean they’re completely neglecting sites like Facebook, LinkedIn and Twitter in the job search process. It’s important for companies to be present across all job search platforms because 28%, the same proportion that said they’ll use newspapers, plan to utilize LinkedIn as a networking tool and a way to explore companies they’re interested in. That’s a whopping 21% increase from last year, when only 5% said LinkedIn was their preferred method for job hunting. Facebook also saw a slight increase (+2%) year over year. Seven percent of respondents will use the popular social networking site as their primary job search tool. Two percent choose Twitter.

Though social media sites aren’t the primary tool for job searches among students, there’s a noticeable and significant shift in that direction.

“The shift in where Millennials are looking for their jobs is indicative of the future,” Suleman says. “Students using LinkedIn as a job search platform jumped by 21% and social networking is still gaining momentum in that arena. We can expect to see a lot more of it in the future, while traditional outlets continue to decline. Gen-Y is the best-connected generation in the workforce today.”

Suleman says it’s time for companies to become more aligned to where candidates want to look and what they are looking for.

What’s Most Important

The survey also asked students what’s most important to them when making a decision about where to work. It’s no surprise that more than half said salary – but that wasn’t the winner. A majority (55%) of students value career advancement opportunities most. That’s a 17% increase from last year.

“I’m attracted by the ability to advance through the company,” a student wrote on the survey.

Gen Y has a ravenous appetite for advancement, and new graduates crave jobs that will offer growth opportunities. Given that career advancement is such a powerful incentive, it’s critical that employers highlight those opportunities in the recruiting process.

“Salary will always be a top consideration because it fulfills basic needs, but for the first time, career advancement has surpassed it in what is important to students,” Suleman says. “They are motivated intrinsically and are focused on fulfilling higher needs, and they want companies to fuel this motivation by recognizing their contributions.”

Size Doesn’t Matter

As it turns out, size really doesn’t matter to most students when it comes to choosing an employer. “The economy has made the job search competitive for Millennials and the majority who don’t care about the size of a company are feeling the pressure to secure a job – any job,” Suleman explains.

Forty-one percent said they don’t care, which means employers have to distinguish themselves for something other than size. Strong corporate culture is one way a company can assert itself.

One student wrote on the survey, “In my opinion, a relaxed, welcoming company culture is a major advantage to attracting good employees.”

Thirty-four percent of the respondents said they prefer to work for a company with 26 to 500 employees, 10% said they desire a company with less than 25 employees, another 10% want to work for a company with 501 to 5,000 employees, and the remaining 5% said over 5,000 employees.

How Long They’ll Stay

The average tenure of a Millennial is 1.5 years, according to the Department of Labor, but a vast majority of respondents expect to stay with their first employer for 2 to 5 years. An even more ambitious group (24%) estimate they’ll stay for more than 10 years.

The stark difference between Millennials’ intended loyalty and speedy departure rates presents an opportunity for employers to design more effective retention strategies.

Just because you’ve recruited a top-notch employee doesn’t mean your work is done. Employers need to acknowledge the possibility that their new recruit will leave. Make sure you’re providing employees with what they want – like career advancement opportunities and an outstanding corporate culture. Another way to hold on to your most prized employees: Reward them for their accomplishments.

Rewards They Love Most

Suppose your employer has an employee reward program and you earned a reward. If you could choose your own reward, what would you choose?

Students were asked this question on the survey. Eighty-four percent said travel is the most attractive reward.

“Travel was the most desirable award, but experience and products were hot on their trail,” Suleman says. “The most important thing to Millennials is choice, and this is something that resonates with every generation. Traditional years of service awards are an antiquated HR practice that isn’t effective and isn’t relevant, but 92% of North American companies continue to use them. When it comes to extrinsic motivation, Millennials respond best to intangible and experiential rewards. They are doers, not dreamers, and a crystal vase or a trophy that says, ‘I’m great’ does not suffice.”

What This Says About Millennials

“There have been stereotypes about every generation. The stereotypes about Millennials are true in that they are tech-savvy and have grown-up in a time of innovation,” Suleman explains.

“The survey just proves that they know what they want. They want to work with an organization who values their contributions, provides career development and a competitive salary. In addition, they are willing to stay with an employer for a very long time based on their needs being met.”

Recruiters are taking a much more aggressive approach to add talented employees to their team, Suleman says, and the most successful ones are leveraging employer brand as a means of attracting candidates. “To successfully do that, they must first understand what motivates Millennials, and then they must align their company values and culture to that.”

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